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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: maxncompany who wrote (120281)	6/25/2008 12:48:47 PM
From: koan	Read Replies (1) \| Respond to of 312826

Here is my thinking on THIS GXS area play debate max: Say you want to invest $100,000. If you buy GXS you get 5,000 shares at $20 and if GXS doubles you make $100,000. But lets say instead you put $10,000 in 10 different area play stocks between .10 and $1.00. Pretty much what I have been doing. Now it will take a long time to drill those hundreds of thousands of hectors; and as Hank said there is probably coal all over the place. Not to mention the possiblty of finding some other thing like uranium, potash, diamonds or gas by accident And one can never prove there is no coal, or gold. And as the area play stocks jump all over the place I will be trimming them and moving the money into investment stocks like KCL. Now as GXS moves up to $40, the area plays will probably generally follow with at least similiar gains. A double. I do expect more just because they are cheap and there is so much speculation. Just look at volumns. Now if just one of those area stocks hits something, say a .50 stock of which I have 20,000 shares now, goes from .50 to $5 I make $100,000 right there! That is easy to imagine on speculation alone, then I have just made the same $100,000 on that one stock and the rest is gravy. If a .10 stock goes to $5 I make $500,000. One other thing, a single ore play $20 stock can fall a lot faster than 10, .10 to .50 stocks almost all of which have other holdings and new cash from higher priced PP's to develop and grow and look at their other holdings or any new holding they get. So, in my mind the area plays not only presents a probability of better gains on the upside, but less risk on the downside. We shall see in the next year which strategy works best. cheers,